As the JCR report noted, Indonesia’s current account deficit has been narrowing in recent years — expected to stay around 2 percent of gross domestic product according to the International Monetary Fund — due to improving exports, reducing the country's dependency on offshore financing.

Indonesia’s central bank, Bank Indonesia, has been tightening rules on borrowing from foreign sources since 2014, an effort which managed to shrink foreign debt made by the private sector by 5.6 percent annually to $158.7 million at the end of 2016 and kept it almost flat last year.

"The upgraded rating reflects the growing confidence of international institutions on Indonesia’s fundamental economic strength and the government’s commitment to improve its economic structure in the future," he said.

Agus said JCR’s outlook demonstrates a synergy between the central bank and the government to maintain macroeconomic stability and financial system to provide a conducive atmosphere for sustainable economic growth.

The central bank will continue to implement a consistent policy mix and maintain its coordination with the government, Agus also said.

Indonesia has secured investment grade ratings from the world’s "Big Three" credit rating agencies — Fitch Ratings, Standard & Poor’s and Moody’s — for the first time since 1997 after Standard & Poor’s granted a long-awaited investment grade status to Indonesia in May.